Q4 2021 Fairfax Financial Holdings Ltd Earnings Call

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'twenty one year end results conference call.

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Speaker 1: Good morning and welcome to our call to discuss Fairfax's 2021 year end results. This call may include forward looking statements.

Good morning, and welcome to our call to discuss Fairfax is 2021 year end result. This call may include forward looking statements actual results may differ perhaps materially from those contained in such forward looking statements. As a result of a variety of uncertainties and risk factors. The most foreseeable which are set out under risk factors in our <unk>.

Speaker 1: Actual results may differ, perhaps materially, from those contained in such forward-looking statements as a result of a variety of uncertainties and risk factors.

Speaker 1: the most foreseeable of which are set out and under risk factors in our base shelf prospectus, which has been filed with Canadian securities regulators and is available on CEDAR, and which now include the risk of adverse consequences to Fairfax's business, investments and personnel resulting from or related to the COVID-19 pandemic.

Shelf prospectus, which has been filed with Canadian Securities regulators and is available on SEDAR and which now include the risk of adverse consequences to Fairfax. These business investments and personnel, resulting from a related to the COVID-19, pandemic Fairfax disclaims any intention or obligation to update or revise any forward looking statements.

Speaker 1: Fairfax disclaims any intention or obligation to update or revise any forward-looking statements except as required by applicable securities law. I'll now turn the call over to our Chairman and CEO , Prem Watsa.

Except as required by applicable Securities Law, I will now turn the call over to our chairman and CEO from Wassa.

Speaker 2: Thank you, Derek. Good morning, ladies and gentlemen. Welcome to Fairfax's 2021 year-end corporate call. I'd like to give you some of the highlights and then pass the call to Peter Clark, our President and Chief Operating Officer, to comment on our insurance and reinsurance operations, and Jen Allen, our Chief Financial Officer, to provide some additional financial detail.

Hey, Thank you Gary good morning, ladies and gentlemen, welcome to Fairfax is 2021 year end conference call I'd like to give you some of the highlights and then pass the call to Peter Clark, Our President and Chief operating officer to comment on our insurance and reinsurance operations and Jen Allen, our Chief financial officer to provide.

Some additional financial details I want to begin first of all by congratulating Peter Clarke, who was named President and Chief operating Officer last evening.

Speaker 2: I want to begin, first of all, by congratulating Peter Clark, who was named president and chief operating officer last evening.

Speaker 2: As I said in our press release, Peter has done an outstanding job for Fairfax in numerous roles over the past two decades and fully deserves his appointment as our President.

As I said in our press release, Peter has done an outstanding job with Fairfax and numerous roles over the past two decades and fully this disappointment is that right.

Speaker 2: In many ways, Peter has been the president of Fairfax for some time, I said. It just took us a while to realize.

In many ways Peter had been the bread and the Fairfax for some time I said, it just took us a while to realize it.

Speaker 2: There is no one who represents Fairfax culture any better. Smart, hardworking, with no ego.

There is no one who represents backpacks, Joe any better.

Mike.

Hard working with no ego.

Speaker 2: Jen and I look forward to continuing to work very closely with Peter.

John and I look forward to continuing to work very closely with Peter.

Speaker 2: So now, over onto the call. We had an outstanding year with record earnings of 3.4 billion, surpassing our previous high of 2 billion in 2019. Book value per share grew by 34%, adjusted for our $10 per share dividend. The 34% growth in book value was a combination of record underwriting profit over $800 billion and outstanding investment results.

So now.

On to the call we had an outstanding year with record earnings of three 4 billion, surpassing our previous high of 2 billion in 2019 book value per share grew by 34% adjusted for a $10 per share dividend at 34% growth in book value was the combination of.

Record underwriting profit over 800 billion and outstanding investment results.

Speaker 2: A combined ratio for the year was 95%, just quite another year of high catastrophe loss.

Our combined ratio for the year was 95% despite another year of high catastrophe losses.

Speaker 2: Gross written premiums were up 25% in the year, over 30% in the fourth quarter.

Written premiums were up 25% in the year over 30% in the fourth quarter.

Speaker 2: with steady rate increases across all our major lines of business, with the exception of workers' compensation. Insurance and re-insurance businesses are growing rapidly all over the world. We wrote $23.8 billion in gross premiums in 2021, which is up over $4.8 billion from 2020, essentially all organic.

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Steady rate increases across all our major lines of business with the exception of workers' compensation.

Our insurance and reinsurance businesses are growing rapidly all over the world. We brought 23 8 billion in gross premiums in 2021, which is up over a full point 8 billion from 2020, essentially all organic.

Speaker 2: It took us 18 years to reach 4.8 billion. We wrote that in one year in 2021.

Took us 18 years to reach four 8 billion.

Worked that in one year and 2021.

Congratulations must go to all our president who produce business out of <unk>.

Speaker 2: Congratulations, Moscow, to all our presidents who produced this result. A decentralized approach works well.

Centralized approach works well.

Speaker 2: As we have disclosed in our press release, Matthew Wilson, our president of Brit, took ill late last year. He is undergoing treatment and we expect him to be back in 2022. Please keep him in your thoughts and prayers.

As we have disclosed in our press release Matthew Wilson.

Brit together late last year.

It's undergoing treatment and we expect them to be back in 2020 to please keep them in your thoughts and prayers.

We're fortunate that Martin Thompson, the former President of virus eight Canada joined US and is the interim CEO , Brett while Mark Allen, who is doing an outstanding job.

<unk> is building key.

More on key from Peter.

All through 2020 on our conference calls I had highlighted to you that that's shown on page 188 about 2019 annual report.

Page two of the 2001.

201, I'll call. It 2020 annual report there were only four out of 34 yards would be a negative investment return.

In each case, we rebounded significantly in the next year.

So for the last time from that table in yellow.

But there's plenty of time for me 1990.

Speaker 2: Investment portfolios went down 4.4%, 1991 they went up 14.6%, 1999 down 2.7%, 2000 the next year up 12.2%, 2013 down 4.3%, 2014 up 8.6%, and 2016 down 2.2%, the following year 2017 up 6.8%.

Our investment portfolio has went down 4.4% 1991. They went up 14, 6% 1999 down two 7% 2000 and next year up 12, 2% 2013 down four 3% 2014.

<unk> up eight 6% in 2016 down two 2% following the 2017 up six 8%.

Speaker 2: But it was only four times that our portfolios went down in 34 years, at all mark to market. Each time investors worried about our investors.

But it was only four times that our portfolio has went down at 34, yes, that's all mark to market.

Investors worried about our investments.

Speaker 2: and investment results were much better than expected. In the first quarter of 2020, as you know, we had a negative 3.6% return on our investment portfolio. But by the end of the year, our investment returns more than reversed, and we ended the year with a positive return of 2.4%.

And investment results were much better than expected in the first quarter of 2020 as you know we had a negative three 6% return on our investment portfolio.

But by the end of the year.

Just wanted to touch more than robust and we ended the year with a positive return up to 4%.

Speaker 2: Our investment return in 2021 was 9.2%, which resulted in a total investment return of 4.4 billion.

Investment returns in 2021.

Nine 2%, which resulted in a total investment return of four 4 billion.

Speaker 2: Please note that's with half the portfolio earning nothing because there isn't cash in short term security.

Please note that with the portfolio nothing because other than cash and short term securities.

Of course this includes 1.5 billion from digit whereas they have completed a significant portion of the announced 200 million capital raise at a valuation of three 5 billion.

Speaker 2: Of course, this includes $1.5 billion from Digit, where they have completed a significant portion of the announced $200 million capital raise at a valuation of $3.5 billion. Kamesh Goyal has done an outstanding job at Digit, and Digit is growing at 30% to 40% per year, and it's profitable.

<unk> has done an outstanding job.

And did that is growing at 30% to 40%.

And it's profitable.

History has shown that our returns are very lumpy and this has worked for us. So that last 36 years, we have never focused on steady quarterly earnings, even though even though the stock market loves it currently.

Speaker 2: Our history has shown that our returns are very lucky.

Speaker 2: And this has worked for us over the last 36 years.

Speaker 2: We have never focused on steady quarterly earnings, even though the stock market loves it currently.

Speaker 2: But we have increased our book value per share over 36 years at 18% per year, and that's long-term for you.

But we have increased our book value per share over 36 years at 18% per year.

And that's long term for you 36 years.

Speaker 2: Here's how our major common stock positions have done mark to market in our financial statements in 2020.

She is a major site common stock positions and have done mark to market in our financial statements in 2020.

Speaker 2: Stelco was up 81%, CIB Bank was up 18%, Kelly Wilson up 33%, IFL Wealth 42%, BlackBerry up 41%. The top 20 mark-to-market positions, which we have to mark-to-market on our balance sheet, is up 30%.

Telco was up 81% CIB Bank was up 18% Kennedy Wilson up 33% I have probably about 42% Blackberry up 41%.

20, mark to market positions, which we have to mark to market on our balance sheet is up 30%.

Speaker 2: not included in the APAP are our Associates and Consolidated Investments, which we've begun showing you in our annual report last year, and again it will be in this year's annual report.

Not included in the above all of our associates and consolidated investments, which we've.

Begun.

Showing you in our annual report last year and again that would be in this year's annual report.

Speaker 2: Here's how these large positions did in 2020.

Here's how these large positions that in 2020.

Eurobank up 53% Atlas Corp, up 31% quite sub 58% resolute up 134% Fairfax, India up 31% recipe up 7% Thomas Cook up 27% and on average they were up 30%.

Speaker 2: Eurobank up 53%, Atmoscorp up 31%, Quest up 58%, Resolute up 134%, Fairfax, India up 31%, Recipe up 7%, Thomas Cook up 27%, and on average, they were up 30%.

Speaker 2: I have mentioned to you that Greece is the best business-friendly country in Europe . Eurobank is now trading yesterday at 1.13 euro versus 89 cents euro at year-end 2021. That's up 27%. We just think it still has a long way to go.

I have mentioned to you that Greece is the best business friendly country in Europe .

Eurobank is now trading yesterday at 1.13 Euro what it says.

89 zero at year end 2021, that's up 27%.

We just think it still has a long way to go.

Speaker 2: Our book value per share, as I said, was up 34% in 2021. However, this does not include the increase in our equity-accounted investments and our consolidated investments, which are not mark-to-market. If you did mark-to-market, we would add $346 million or $15 a share on a pre-tax basis, being the excessive fair value over carrying value as of December 31st, 2021.

Our book value per share as I said was up 34% in 2021. However, this does not include the increase in our equity accounted investments and our consolidated investments, which are not mark to market.

You did mark to market, we would add $346 million or $15, a share and a pre tax basis being the access of fair value over carrying value as of December 31, 2021 and.

Speaker 2: In that quarter, we recorded additional unrealized gains on digits of $668 million.

In the quarter.

We recorded additional unrealized gains on digits up $668 million and and upon control and consolidation, which is subject to regulatory approval. We anticipate additional gains of approximately 400 million or $17 per share on a pretax basis. If these are added to our book value.

Speaker 2: and upon control and consolidation, which is subject to regulatory approval, we anticipate additional gains of approximately $400 million or $17 per share on a pre-tax basis.

Speaker 2: If these are added to our book value, of course it's straight arithmetic, our book value will be 600, goes from 631 per share to 660 dollars a share.

Cost of straight arithmetic.

Our book value will be six from both from 631 a share.

$660 a share.

Speaker 2: As I've said previously, long-term value investing has gone through a very difficult time for about a decade now. Valuations of value-oriented stocks versus growth stocks, particularly technology, have never been so extreme in the last few years, exceeding even the extremes of the dot-com era in 2000.

As I've said previously long term value investing has gone through a very difficult time for about a decade now valuations are value oriented stocks versus growth stocks, particularly technology I've never been so extreme in the last few years exceeding even the extremes of the dot Com era too.

1000 <unk>.

Speaker 2: As the economy continues to normalize and interest rates continue to rise because of inflation, we expect a reverse to the mean with value-oriented stocks coming to the floor.

As the economy continues to normalize and interest rates continue to rise because of inflation, we expect a robust to the mean.

Value oriented starts coming to the floor.

Speaker 2: We continue to believe our common stock positions are very undervalued. I remind you that in the three years, and I've said this to you before, that in the three years 2000 to 2002 down

We continue to believe our common stock positions are very undervalued I remind you that in the three and I've said this to you before that in the three years 2000 to 2002 downturn most stock market indices were down about 30% without stock portfolio was up.

Speaker 2: Most stock market indices were down about 50%, but our stock portfolio was up 100%.

100%.

Throughout 2020 , one I stated publicly that the market price of <unk> shares was ridiculously cheap.

Speaker 2: Throughout 20 and 21, I stated publicly that the market price of Fairfax shares was ridiculously cheap. In the fourth quarter, we had the opportunity to complete a substantial issue of it, purchasing and cancelling 2 million shares at $500 per share for a cash payment of $1 billion.

In the fourth quarter, we had the opportunity to compete the substantial issuer bid purchasing and canceling 2 million shares at $500 per share.

Cash payment of $1 billion the.

Speaker 2: The substantial issue of debt was done in conjunction with a 9.9% sale of Odyssey Group for cash consideration of $900 million, which resulted in a gain of $429 million.

The substantial issuer bid was done in conjunction with a nine 9% sale of Odyssey group for cash consideration of 900 billion.

Which resulted in a gain of $429 million.

Speaker 2: Combined, the two transactions were essentially capital and cash neutral for us.

Combined the two transactions were essentially capital and cash neutral for US we were able to buy back 2 million shares at $500 per share well below our current book value of $631 per share.

Speaker 2: We were able to buy back 2 million shares at $500 per share, well below our current book value of $631 per share.

Speaker 2: and the intrinsic value of our company is much higher.

And the intrinsic value of our company is much higher.

Speaker 2: Just to give you one example, our gross premiums were up 25% in 2021, but on a per share basis

Just to give you one example.

Premiums were up 25% in 2021.

But on a per share basis, which is what counts in the long term.

Speaker 2: which is what counts in the long term. Our gross premiums per share, our gross premiums per share were up 38% because of the fact that we have reduced our shares outstanding by two million.

Gross premiums plus share our gross premiums per share were up 38% because of the fact that we have reduced our shares outstanding by $2 million.

At December 31, 2021, the company's insurance and reinsurance companies held $24 9 billion in cash and short dated investments representing 33% of the portfolio of investments.

Speaker 2: At December 31st, 2021, the company's insurance and reinsurance companies held $24.9 billion in cash and short-dated investments, representing 50.3% of the portfolio investment.

Speaker 2: With every 100 basis point increase in interest rates, they've already gone up 30 basis points. This would provide us with an additional $250 million of additional investment income.

With every 100 basis point increase in interest rates and they've already gone up 50 basis points. This would provide us with additional $250 million of additional investment income.

Speaker 2: We continue to have approximately $1.5 billion at the holding company, predominantly in cash and short-term securities, and our $2 billion bank line is totally undone at year-end.

We continue to have approximately $1 5 billion at the holding company predominantly in cash and short term securities and our 2 billion Bank line is totally undrawn at year end.

Speaker 2: Please note, our cash-in-the-holding company, as I've said to you before, is to meet any and every contingency that Fairfax might face.

Please note our cash at the holding company as I've said to you before is to meet any and every contingency that fairfax might face.

Speaker 2: We are not making any long-term investments with this cash other than to support our insurance and re-insurance operations if needed. I will now pass the call to Peter Clark, our President and Chief Operating Officer, to comment on our insurance and re-insurance operations. Peter?

We are not baking any long term investments with this cash other than to support <unk>, Sean said reinsure.

Reinsurance operations if needed.

I will now pass the call to Peter Clark, our President and Chief operating Officer.

Comment on the insurance and reinsurance operations Peter.

Thank you Prem.

Speaker 1: Our companies continued to produce outstanding underlying results with strong organic growth. Our gross premium was up 32% in the fourth quarter, and for the year premium was up 25%, generating gross premiums written of $23.8 billion.

Our company has continued to produce outstanding underlying results with strong organic growth. Our gross premium was up 32% in the fourth quarter and for the year premium was up 25% Jenny.

Generating gross premiums written of $23 8 billion.

Speaker 1: We finished the year off strong with a combined ratio in the fourth quarter of 88.1 percent and a combined ratio of 95 percent for the year.

We finished the year off strong with a combined ratio in the fourth quarter of 88, 1% and a combined ratio of 95% for the year.

Speaker 1: This produced record underwriting profit of $801,000,000, off 160%.

This produced record underwriting profit of $801 million up 160%.

Speaker 1: from 2020, despite absorbing over 1.1 billion of catastrophe losses in the year.

From 2020, despite absorbing over $1 1 billion of catastrophe losses in the year.

Speaker 1: It is expected that the industry will have in excess of $100 billion of catastrophe losses in 2021, the second highest ever.

It is expected that the industry will have in excess of $100 billion of catastrophe losses in 2021.

The second highest ever.

By comparison in 2020, we produced an underwriting profit of $309 million and 97, 8% combined ratio, reflecting catastrophe losses of $644 million or $4 seven combined ratio points and COVID-19 losses.

Speaker 1: By comparison, in 2020, we produced an underwriting profit of $309 million, a 97.8% combined ratio, reflecting catastrophe losses of $644 million, or 4.7 combined ratio points, and COVID-19 losses of $669 million, or 4.8 combined ratio points.

Up 669 million or four eight combined ratio points.

Speaker 1: In 2021, our combined our COVID-19 related losses amounted to $129 million.

In 2021, our combined our COVID-19 related losses amounted to $129 million.

Speaker 1: On the underwriting front, ZNF and Northbridge reported the lowest combined ratios for 2021 being 88% and 89% respectively.

On the underwriting front zns Northbridge reported the lowest combined ratios for 2021, being 88% and 89% respectively.

Speaker 1: while Allied World also had a strong year at 93 percent.

While Allied World also had a strong year at 93%.

Speaker 1: Odyssey Group and BRIT had elevated combined ratios still below 100% driven by catastrophe losses.

Odyssey group and Brett had elevated combined ratios.

Below a 100% driven by catastrophe losses.

Speaker 1: As mentioned, our gross premium for the year was up 25%, an increase of approximately $4.8 billion from the previous year.

As mentioned our gross premium for the year was up 25% an increase of approximately $4 8 billion from the previous year.

Speaker 1: This growth was made possible by favorable market conditions that prevail in many of our markets, particularly in North America.

This growth was made possible by favorable market conditions that prevail in many of our markets, particularly in North America.

Odyssey group's gross premiums were up 29% with continued expansion in both its insurance and reinsurance segments and ended the year strong with premium up 41% in the fourth quarter.

Speaker 1: Odyssey Group's gross premiums were up 29%, with continued expansion in both its insurance and reinsurance segments, and ended the year strong with premium up 41% in the fourth quarter.

Speaker 1: Allied World grew its premiums by 25 percent, with growth especially strong in directors and officers' liability, professional liability, and excess casualties segments.

Allied World grew its premiums by 25%.

With growth, especially strong in directors and officers liability professional liability and excess casualty segments.

Speaker 1: Brits premiums were up 34% for the year, including key, it's innovative follow on follow on syndicate that started writing business in 2021.

Britain premiums were up 34% for the year, including key innovative follow on follow on syndicate, but started writing business in 2021.

It should be noted that under accounting standards, Brent must consolidate 100% of key as results as it has effective control of the company, even though it has less than 50% economic interest.

Speaker 1: It should be noted that under accounting standards, BRIT must consolidate 100% of QIES results as it has effective control of the company, even though it has less than a 50% economic interest.

Speaker 1: excluding key, Brits' gross premiums were up 17%.

Excluding key Bret.

Gross premiums were up 17%.

In Canada, Northbridge increased its premium by 23% in U S. Dollar terms as it continues to register a favorable rate increases strong retention and a healthy growth in new business.

Speaker 1: In Canada, Northbridge increased its premium by 23% in U.S. dollar terms as it continues to register favorable rate increases, strong retentions, and a healthy growth in new business.

Speaker 1: Crumb and Forster increased its top line by 20%, driven by its accident and health, commercial lines and surplus and specialty divisions.

From an <unk> increased its top line by 20% driven by its accident and health commercial lines and surplus and specialty divisions.

Speaker 1: Growth at Zenith continued to be more modest, as it continues to face the headwinds of the competitive workers' compensation market in the United States.

Growth at <unk> continued to be more modest as it continues to face the headwinds of the competitive workers' compensation market in the United States.

Speaker 1: Our international operations continued its expansion as well, with premium growth of approximately $524 million year over year.

Our international operations continued its expansion as well with premium growth of approximately $524 million year over year fair.

Speaker 1: Fairfax Asia's premiums were up 20 percent, 27 percent this year, and included two quarters from recently consolidated Singapore REITs.

Fairfax Asia premiums were up 20%, 27% this year and included two quarters from recently consolidated Singapore rates.

Speaker 1: Our companies in South America, Central and Eastern Europe , and in South Africa all registered strong growth in the year.

Our companies in South America, Central and Eastern Europe , and in South Africa, all registered strong growth in the year.

Speaker 1: Entering 2022, across most of Fairfax, we see significant opportunity for continued growth. While absolute rate increases will taper in some lines, overall rate level is expected to remain attractive. Our management teams are focused in each of their companies on extending the gains made over the last several years.

Entering 2022.

Across most of Fairfax, we see significant opportunity for continued growth while absolute rate increases will paper in some mines overall rate level is expected to remain attractive.

Our management teams are focused in each of their companies on extending the gains made over the last several years.

Speaker 1: As previously mentioned, our combined ratio of 95% included 7.2 points of catastrophe losses.

As previously mentioned, our combined ratio of 95% included seven two points of catastrophe losses.

Hurricane Ida U S winter storms and the European floods were the main drivers of the catastrophe losses.

Speaker 1: Hurricane Ida, U.S. winter storms, and the European floods were the main drivers of the catastrophe losses, which resulted in losses of $408 million, $246 million, and $220 million respectively.

Which resulted in losses of $408 million $246 million and $220 million respectively.

Speaker 1: Odyssey Group and BRIT felt the effects of the catastrophe losses the most, adding 10 and 17 points on their combined ratio.

Odyssey group and breath felt the effects of the catastrophe losses, the most adding 10 and 17 points on their combined ratio.

Speaker 1: BRIT had a very strong ending to the year, bringing its combined ratio down to 96.8% for the year. As mentioned previously, KEY is consolidated into BRIT's results.

Brad had a very strong ending to the year, bringing its combined ratio down to 96, 8% for the year.

As mentioned previously key is consolidated in <unk> results for the year, excluding key <unk> combined ratio was 95.

Speaker 1: For the year-excluding key, RIP combine ratio was 95.

Speaker 1: Key's combined ratio was 113.5 for the year, as its earned premiums catches up with its underwriting expenses and its catastrophe losses. We expect Key will increase BRIT's underwriting profits over time, and this began in the fourth quarter with Key posting an 88% combined ratio for the quarter.

Keith combined ratio was $113 five for the year as its earned premiums catches up with its underwriting expenses and its catastrophe losses.

We expect key will increase spreads underwriting profit over time.

And this began in the fourth quarter with key posting an 88% combined ratio for the quarter.

Speaker 1: Mark Allen and his team have done an outstanding job in their first year of business.

Mark Allen and his team have done an outstanding job in their first year business.

Speaker 1: Both Brett and Crumlin-Forster completed lost portfolio transfers of prior year reserves in the quarter. The transfer of the reserves are accounting for a negative premium and reduced net written and earned premium for Crumlin-Forster and Brett.

Both Fred and Crum <unk> Forster completed loss portfolio transfers of prior year reserves in the quarter.

The transfer of the reserves are accounted for as negative premium and reduced net written and earned premium for Crum <unk> Forster and Brett.

Speaker 1: by $358 million and $344 million, respectively.

By $358 million and $344 million respectively.

Speaker 1: Each company's combined ratio benefited by approximately half a combined ratio point for the year.

Each company's combined ratio benefited by approximately half a combined.

The ratio of point for the year.

Sure.

For the year, our insurance and reinsurance companies recorded favorable reserve development of $356 million or two two points on our combined ratio.

Speaker 1: For the year, our insurance and reinsurance companies recorded favorable reserve development of $356 million, or 2.2 points on our combined ratio.

Speaker 1: This compares to 455 million, or three points in 2020.

This compares to $455 million or 3.3 points in 2020.

Speaker 1: For the full year 2021, our favorable development includes $74 million of unfavorable development relating to changes in our COVID-19 ultimate losses from 2020.

For the full year 2021 are favorable development includes 74 million of unfavorable development relating to changes in our COVID-19 ultimate losses from 2020.

As of the end of the year, we hold $417 million and net unpaid claims for COVID-19 losses of which 71% as IBM.

Speaker 1: As of the end of the year, we hold $417 million in net unpaid claims for COVID-19 losses, of which 71% is IBNR.

We believe the reserve position and in our operating companies continues to strengthen as we expand with today's well priced business.

Speaker 1: We believe the reserve position in our operating companies continues to strengthen as we expand with today's well-priced business.

Our expense ratio continues to benefit from the sharp increase in premium volume. Our overall underwriting expense is one point lower year over year helped mainly by Allied world, where the expense ratio dropped two points in 2021 versus 2020.

Speaker 1: Our expense ratio continues to benefit from the sharp increase in premium volume. Our overall underwriting expense is one point lower year over year, helped mainly by Allied World, where the expense ratio dropped two points in 2021 versus 2020.

Speaker 1: All in all, we are very pleased with the performance of our companies in 2021.

All in all we are very pleased with the performance of our companies in 2021.

In the current year.

Market conditions remain attractive.

Speaker 1: We expect continued growth and the possibility of improved underwriting results. Our companies are very well positioned to capitalize on the opportunities within their markets.

We expect continued growth and the possibility of improved underwriting results. Our companies are very well positioned to capitalize on the opportunities within their markets.

Speaker 1: The decentralized operating system of Fairfax is critical to our success.

A decentralized operating system of Fairfax is critical to our SaaS.

I will now pass the call to Jen Allen, our Chief Financial Officer to comment on our investment results, our non insurance companies performance and overall financial position. Thank.

Speaker 1: I will now pass the call to Jen Allen, our Chief Financial Officer, to comment on our investment results, our non-insurance company's performance, and overall financial position.

Speaker 3: Thank you, Peter. The strong results of the fourth quarter, when combined with the first nine months of 2021 resulted in a record year for Fairfax.

Thank you Pierre <unk>.

The strong results of the fourth quarter when combined with our first nine months of 2021 resulted in a record year for Fairfax, We reported net earnings attributable to <unk> shareholders of $931 million and just over $3 4 billion in the fourth quarter and full year 2021, respectively.

Speaker 3: We reported net earnings attributed to Fairfax shareholders of $931 million and just over $3.4 billion in the fourth quarter and full year 2021, respectively.

Speaker 3: with bulk value per basic share at December 31st, 2021 of $630.60, which represented a full year growth in bulk value per basic share of $34.20, which has been adjusted for the $10 per common share dividend that was paid in the first quarter of 2021.

Book value per basic share at December 31, 2021 at $630 60.

Which represented a full year growth and book value per basic share of $34, two which has been adjusted for the $10 per common share dividend that was paid in the first quarter of 2021.

Pierre has already provided a detailed commentary on our insurance and reinsurance companies for I'll begin my remarks on the results of our non insurance consolidated companies.

Speaker 3: Peter has already provided detailed commentary on our insurance and reinsurance companies, so I'll begin my remarks on the results of our non-insurance consolidated companies.

Speaker 3: Looking at the fourth quarter of 2021 compared to 2020, excluding the impact of Fairfax, India's performance fees, operating income of the non-insurance companies improved by $124 million.

Looking at the fourth quarter of 2021 compared to 2020.

Excluding the impact of Fairfax, India performance fees operating income as the non insurance companies improved by $124 million.

Speaker 3: principally reflecting favorable results from our restaurant and retail segments, which benefited from reduced COVID-19-related lockdown restrictions.

Principally reflecting favorable results from our retail restaurant and retail segment, which benefited from a reduced COVID-19 related lockdown restrictions.

Speaker 3: Lower operating losses at Thomas Cook India which also benefited from reduced COVID-19 related lockdown restrictions in India.

Lower operating losses at Thomas cuts it'll be at which also benefited from a reduced COVID-19 related lockdown restrictions in India.

Speaker 3: and operating income in the other segment in the fourth quarter of 2021 compared to an operating loss in the fourth quarter of 2020, principally reflecting the deconsolidation of Fairfax Africa and its subsidiaries on December 8, 2020.

<unk> operating income in the other segment in the fourth quarter of 2021 compared to an operating loss in the fourth quarter of 2020, principally reflecting the deconsolidation of Fairfax Africa and its subsidiary on December eight 2020.

Speaker 3: Turning to the full year 2021 compared to 2020 and excluding the impact of Fairfax India's performance fees, operating income of the non-insurance companies improved by $257 million.

Turning to the full year 2021, compared to 2020, and excluding the impact of Fairfax and with performance fees.

Operating income of the non insurance companies improved by $257 million.

Speaker 3: principally reflecting improvement of 156 million of operating income from a restaurant and retail segment, which benefited from the reduced COVID-19 lockdown restrictions.

Principally reflecting an improvement of $156 million of operating income from our restaurant and retail segment, which benefited from a reduced COVID-19 lockdown restrictions.

Speaker 3: strong growth at Gulftown and the strengthening of the Canadian dollar compared to the U.S. dollar, which was partially offset by lower government subsidies received in 2021 compared to 2020.

<unk> growth at Gulf power and the strengthening of the Canadian dollar compared to the U S dollar.

It was partially offset by lower government subsidies received in 2021 compared to 2020.

We had higher share profit from Fairfax, India as investments in associates.

Speaker 3: We had higher share of profit from Fairfax, India's investments in associates.

Speaker 3: lower operating loss at Thomas Cook, India, which benefited from reduced COVID-19-related lockdown restrictions in India, and an improvement of $65 million of operating income in the other segment in 2021, reflecting again the deconsolidation of Fairfax, Africa on December 8, 2020, with this segment producing an operating profit for 2021 compared to the operating loss in 2020.

The lower operating loss at Thomas Cook, India, which benefited from the <unk> COVID-19 related lockdown restrictions in India, and an improvement of $65 million of operating income in the other segment in 2021, reflecting again, the deconsolidation of Fairfax Africa on December eight 2020 with that segment.

Producing an operating profit for 2021 compared to the operating loss in 2020.

Speaker 3: As noted in the full year of 2021, Fairfax, India recorded a performance fee which was $85 million with pre-tax earnings attributed to Fairfax shareholders benefiting by about $60 million as Fairfax, India's non-controlling interest is allocated at 70% of Fairfax, India's expense.

As noted in the full year of 2021, Fairfax, India recorded a performance fee, which was $85 million with pre tax earnings attributed to Fairfax shareholders benefiting by about $60 million at Fairfax, India Noncontrolling interests is allocated at 70% of Fairfax, India is expense.

Speaker 3: At December 31, 2021, the pre-tax excess of fair value over the adjusted carrying value of our non-insurance associates and certain consolidated non-insurance subsidiaries that the company considers to be portfolio investments

At December 31, 2021, the pre tax as the excess of fair value over the adjusted carrying value of our non insurance associate and certain consolidated non insurance subsidiary that the company considers to be portfolio investments.

Speaker 3: with $346 million, which compared to a deficiency or an adjusted carrying value that was higher than the fair value at December 31, 2020 of $663 million. A significant improvement in 2021 of just over $1 billion, with the pre-tax excess of $346 million not reflected in our book value per share, but has been regularly reviewed by management as an indicator of the underlying investment performance.

$346 million, which compared to a deficiency or an adjusted carrying value that was higher than the fair value at December 31, 2020 at $663 million.

A significant improvement in 2021 of just over $1 billion with a pre tax excess of $346 million not reflected in our book value per share, but it's been regularly reviewed by management as an indicator of the underlying investment performance.

Speaker 3: Our non-insurance associates accounted for $883 million of that appreciation, principally attributed to Atlas Corp. of $285 million, Eurobank of $278 million, Quest $208 million, and Resolute $74 million, and improvements in the certain consolidated non-insurance subsidiaries of $126 million related to Fairfax, India of $94 million, and Thomas Cook of $59 million.

Our non insurance associated accounted for $883 million of that appreciation principally attributed to Atlas Corp of 285 million Euro bank of $278 million plus $208 million in resolute $74 million and improvements in this certain consolidated non insurance subsidiaries of 102000.

$6 million related to Fairfax, India up $94 million and Thomas Cook at $59 million.

Speaker 3: As we've mentioned before, we're focused on our organic growth, supported by smaller family acquisitions with a commitment to growing long-term shareholder value.

As we've mentioned before we're focused on our organic growth supported by smaller suddenly acquisitions with our commitment to growing long term shareholder value.

Speaker 3: With our concerns over inflation at December 31st, we continue to hold a significant portion of the portfolio in cash, short-term investments, and other short-dated fixed income securities that represented $24.9 billion, or 50.3% of the insurance and reinsurance companies' investment portfolio, which was comprised of $21.8 billion of subsidiary cash and short-term investments and $3.1 billion of short-dated U.S. Treasuries.

With our concerns over inflation at December 31, we continue to hold a significant portion of the portfolio in cash short term investments and other short dated fixed income securities.

Represented $24 9 billion or 53% at the insurance and reinsurance company investment portfolio, which was comprised of $21 8 billion of subsidiary cash and short term investments and $3 1 billion of short dated U S treasuries.

Speaker 3: This has dampened our interest income in the short term, but has protected us from the impact of inflation and rising rates.

This has dampened our interest income in the short term, but has protected us from the impact of inflation and rising rate.

Speaker 3: Our interest and dividend income of $641 million in 2021 was down from $769 million in 2020, primarily reflecting that strategy to invest in a shorter-term debt and not reach for yield, which resulted in the lower interest income earned, principally due to decreased sovereign bond yield, sales of U.S. Treasury bonds throughout 2020, and net sales of our U.S. corporate bonds in 2021.

Our interest and dividend income of $641 million in 2021 was down from the $769 million in 2020.

Primarily reflecting that strategy to invest in a shorter term debt and not reached for yield which resulted in a lower interest income earned principally due to decreased sovereign bond yields sale.

Sales of U S Treasury bonds throughout 2020, and net sales of our U S corporate bonds in 2021.

Speaker 3: This was partially offset by higher interest income earned on our first mortgage loans that were purchased in 2021 and increased dividend income from our common stock portfolio.

This was partially offset by higher interest income earned on our force first mortgage loans that were purchased in 2021 and increased dividend income from our common stock portfolio.

Speaker 3: We added net purchases of first mortgage loans of $827 million in 2021 which are secured by high-quality real estate in the U.S., Ireland, and the U.K. and have terms less than 5 years.

We added net purchases of first mortgage loans of $827 million in 2021, which are secured by high quality real estate in the U S Ireland and the UK and have terms less than five years. These.

Speaker 3: These investments will provide some benefit to our interest income in the coming years, along with the benefit from the more recent rate environment. We'll be able to take advantage of the rise in the short-term interest rates given the significant portion that we hold in the cash and short-terms in the portfolio.

These investments will provide some benefits to our interest income in the coming years, along with the benefit from the more recent rate environment, we will be able to take advantage of the rise in the short term interest rates given the significant portion that we hold and the cash and short term in the portfolio.

Speaker 3: Looking to our consolidated share of profit of Associates of $402 million in 2021, it reflected strong results from our investments in Associates and were principally comprised of a share profit of $162 million from Eurobank, $76 million from Resolute, $70 million from Atlas Corp., and $56 million from Gulf Insurance.

Looking to our consolidated share of profit of associates at $402 million in 2021. It reflected strong results from our investments in associates and were principally comprised of share profit of $162 million from Eurobank $76 million from resolute $70 million from Atlas Corp, and <unk>.

$6 million from golf insurance that compared to losses of $112 million from our investments in associates in 2021 that included impairment losses of $240 million and we had no impairment losses recorded in 2021.

Speaker 3: That compared to losses of $112 million from our investments in Associates in 2021. That included impairment losses of $240 million, and we had no impairment losses recorded in 2021.

Speaker 3: Net gains on the investments in the fourth quarter of 2021 were $938 million, and over $3.4 billion for the full year of 2021.

Net gains on the investments in the fourth quarter of 2021 were $938 million and over $3 4 billion for the full year of 2021.

Speaker 3: The net gains on investments in the fourth quarter of 2021 and full year 2021 were primarily comprised of the following.

The net gains on investments in the fourth quarter of 2021 and full year 2020 were primarily comprised of the following.

Speaker 3: The largest component of the net gains were net gains of $368 million and just over $2.3 billion from our equity exposures that reflected the following. In the fourth quarter, our net gains of $171 million on common stock.

The largest component of the net gains were net gains of $368 million and just over $2 3 billion from our equity exposures that reflected the following in the fourth quarter, our net gains of $171 million in common stock that benefited from the appreciation and holding such as commercial international.

Speaker 3: that benefited from the appreciation in holdings such as Commercial, International Bank and Stelco, and $182 million in other equity derivatives, which were mainly our equity total return swaps, including the total return swaps on the Fairfax Boarding Shares.

And stelco and $182 million on other equity derivatives, which were mainly our equity total return swaps, including the total return swaps on the Fairfax subordinate voting shares.

Speaker 3: For the full year, we had net gains of $1.3 billion on common stocks that benefited from the appreciation of holdings such as Stelco, BlackBerry, Limited Partnerships in the U.S., Canada and Asia, and $632 million on other equity derivatives that included our total return swaps, again the Fairfax supporting shares, and our investment in the Atlas Corp warrants.

For the full year, we had net gains of $1 $3 billion in common stock that benefited from the appreciation of holding such as telco Blackberry limited partnerships in the U S, Canada and Asia.

$632 million on the other equity derivatives that included our total return swaps again, the Fairfax subordinate voting shares and our investment in the outlets Corp warrants.

Speaker 3: Secondly, our net gains on investments included $668 million or just under $1.5 billion in each respective period on our investment in the Digit Compulsory Convertible Preferred Shares, which I'll discuss in a moment.

Secondly, our net gains on investments included $668 million or just under $1 5 billion in each respective period on our investment in the digit compulsory convertible preferred shares which I'll discuss in a moment. These.

Speaker 3: These net gains were partially offset by net losses of $116 million and $287 million on the bond portfolio, that primarily related to our U.S. and other corporate bonds.

These net gains were partially offset by net losses of $116 million and $287 million on the bond portfolio that primarily related to our U S and other corporate bonds.

Speaker 3: A couple of additional comments on our $668 million and the $1.5 billion unrealized gains that were recorded on our investment in Digit Compulsory Convertible Preferred Shares.

A couple of additional comments on our $668 million and the $1 5 billion unrealized gains that were recorded on our investment in digit compulsory convertible preferred shares.

Speaker 3: If you recall from our prior quarter conference calls, we hold a 49% equity interest in the associate GoDigit InfoWorks services, or we refer to it as Digit, who entered into the agreements with certain third-party investors whereby its underlying insurance subsidiary Digit Insurance was to raise $200 million of new equity shares, valuing Digit Insurance at approximately $3.5 billion.

If you recall from our prior quarter conference calls, we hold a 49% equity interest in the associate go digit infill work services.

Refer to it as digit who entered into the agreements with certain third party investors whereby its underlying insurance subsidiary digital insurance.

To raise $200 million of new equity shares valuing digit insurance at approximately $3 5 billion.

Speaker 3: In addition to our 49% equity interest in Digit that's recorded under the Equity Method of Accounting as an Investment and Associate, we also hold the Digit Compulsory Convertible Preferred Shares that are accounted for at fair value through profit and loss.

In addition to our 49% equity interest in digit as reported under the equity method of accounting as an investment in associate we also hold the digit compulsory convertible preferred shares that are accounted for at fair value through profit and loss.

Speaker 3: Digit has now successfully completed a substantial portion of that 200 million equity raise, with the remaining tranches expected to close in early 2022 and are subject to regulatory customary closing conditions.

<unk> has now successfully completed a substantial portion of that 200 million equity raise with the remaining tranche is expected to close in early 2022 and are subject to regulatory customary closing conditions.

Speaker 3: These recent transactions valued Digit Insurance at approximately the $3.5 billion, which the company supported by an industry-accepted discounted cash flow model to incorporate unobservable discount rates and long-term growth rates. As a result, we recorded the unrealized gains of $668 million and the $1.5 billion in the respective periods.

These recent transactions valued digit insurance at approximately $3 5 billion, which the company supported by an industry accepted discounted cash flow model to incorporate unobservable discount rates and long term growth rate.

As a result, we recorded the unrealized gains of $668 million and a $1 5 billion in the respective period.

Speaker 3: A few key transactions I want to highlight that were completed in the quarter. Starting at our insurance and reinsurance companies, on December 15, 2021, Odyssey Group had issued shares representing an aggregate of 9.9% equity interest.

A few key transactions I want to highlight that were completed in the quarter starting at our insurance and reinsurance companies on December 15, 2021 Odyssey group had issued shares representing an aggregate of nine 9% equity interest to subsidiaries of the Canadian pension plan investment Board and.

Speaker 3: to subsidiaries of the Canadian Pension Plan Investment Board and OMERS, the Pension Plan for Ontario Municipal Employees.

<unk>, the pension plan and per Ontario municipal employees.

Speaker 3: for cash consideration of $900 million. That resulted in the company recording an aggregate increase to common shareholder's equity of $429 million. And to note, there was no gain recorded on the remaining 90% equity interest retained by the company as Fairfax maintained control and continues to consolidate Odyssey Group.

For cash consideration of 900 million that resulted in the company recording an aggregate increase to common shareholders' equity of $429 million.

Of note there was no gain recorded on the remaining 90% equity interest retained by the company at Fairfax maintain control and continues to consolidate Odyssey group.

Speaker 3: At the holding company, on October 29, Fairfax redeemed its $85 million principal amount of 4.142 unsecured senior notes that were due on February 7, 2024 at par.

At the holding company.

On October 29th Fairfax redeemed at $85 million principal amount of $4. One Q4, one <unk> unsecured senior notes that were due on February seven 2024 at par.

Speaker 3: And then on December 29th, we completed our substantial issuer bid pursuant to which we purchased and cancelled the $2 million subordinate boarding shares at the price of $500 per share for the aggregate cash consideration of the $1 billion that was recorded as a reduction to our common shareholders' equity.

And then on December 29, we completed our substantial issuer bid pursuant to which we purchased and canceled the 2 million subordinate voting shares at a price of $500 per share for the aggregate cash consideration of the $1 billion that was recorded as a reduction to our common shareholders equity.

Speaker 3: Our liquidity position of the company remains strong with our cash and investments at the holding company of approximately $1.5 billion at December 31st and as we've noted before that holding company cash supports the decentralized structure and will enable us to deploy capital to the insurance companies efficiently.

Our liquidity position of the company remained strong with our cash and investments at the holding company of approximately $1 5 billion at December 31.

And as we've noted before at that holding company cash supports the decentralized structure and will enable us to deploy capital to the insurance companies efficiently with.

Speaker 3: We continue to be prudent on our capital deployment strategy with our total debt-to-total-cap ratio excluding the consolidated non-insurance companies, decreasing by 5.6% to 24.1% at December 31, 2021, from the 29.7% at the prior year-end.

We continue to be prudent on our capital deployment strategy with our total debt to total cap ratio, excluding the consolidated non insurance companies decreasing by five 6% to 24, one at December 31, 2021 from the 29, 7% at the prior yearend.

Speaker 3: Primarily reflecting the significant increase in our shareholders' equity that was attributed to the net earnings of just over $3.4 billion, and a reduction in debt at the holding company and our insurance and reinsurance operations.

Primarily reflecting the significant increase in our shareholders' equity that was attributed to the net earnings of just over $3 4 billion and a reduction in debt at the holding company and our insurance and reinsurance operations.

Speaker 3: Before closing, I wanted to provide an update on our commitment to ESG, which has been very meaningful for Fairfax since we began.

Before closing I wanted to provide an update on our commitment to ESG, which has been very meaningful for Fairfax since we began.

Speaker 3: As we've noted before, in 2020, we published our first ESG report that highlighted the importance and achievements we've made to date.

As we've noted before in 2020, we published our first ESG report that highlighted the importance and achievements we have made to date.

Speaker 3: Recognizing there's always room to grow and improve, we continue to enhance our initiatives throughout 2021, and we're pleased to say that we've recently published an updated ESG report. The 2021 report is available on our website, which now incorporates and expanded information on our investment processes, sustainable investments, and sustainable investment initiatives.

Recognizing there is always room to grow and improve we continue to enhance our initiatives throughout 2021, and we're pleased to say that we've recently published an updated ESG report.

The 2021 report is available on our website, which now incorporates an expanded information on our investment processes sustainable investments and sustainable investment initiatives.

Speaker 3: Before I turn the call back over to Prem, I just wanted to remind everyone that in addition to the press release that was issued yesterday on the year-end results, Fairfax's 2021 Annual Report will be posted on the company's website on Friday, March the 4th. Thank you, and I'll turn the call now.

Before I turn the call back over to Pam just wanted to remind everyone that in addition to the press release that was issued yesterday on the year end result.

Fairfax is 2021 annual report will be posted on the company's website on Friday March the fourth.

Thank you and I'll turn the call now back over to Pat.

Speaker 2: Hey, thank you, Jan. We look forward now to answering your questions. Please give us your name and your company name and try to limit your questions to only one so it's fair to everyone on the call. Okay, Brittany, we are ready for any questions that our shareholders might have.

Thank you Jan we look forward now to answering your questions. Please give us your name and your company name and try to limit your question to only one so it's fair to everyone on the call. Okay. Brittany, we're ready to go.

Any questions that shareholders might have.

Thank you.

Like to ask a question. Please press Star then one.

Today comes from Jamie.

From National Bank Financial your line is now open.

Yes, thanks, good morning.

Just wanted to.

I just wanted to get some.

Clarity on the loss portfolio transfer Scott can you just walk us through the strategy thinking then.

Should we expect to see more of this stuff going.

Going forward and.

A little bit more color on that.

Speaker 2: Thank you. Peter, do you want to answer that question?

Terrific. Thank you Peter you want to answer that question.

Sure sure Yes, no. We did two two loss portfolio transfers in the fourth quarter.

Speaker 1: Sure, sure. Yeah, no, we did two lost portfolio transfers in the fourth quarter.

Speaker 1: They're really just one-off events. One was that BRIT that we did, it's a third-party transaction, but with Riverstone International, who of course we know very well, BRIT's done a number of transactions with them over the years. Essentially what it does is it frees up resources for their current claim staff to focus on growth and their ongoing business.

Really just one on one off events.

One was that Brad.

That is the third party transaction, but with.

Riverstone International who of course, we know very well <unk> done a number of transactions with them over the years essentially what it does is.

It allows the.

It frees up resources for their current claim staff to focus on growth and their ongoing business.

Speaker 1: and it frees up capital as well, as you're transferring the reserves to a third party. In the U.S., Krumm Forster also entered into a lost portfolio transfer, but that was with our Riverstone, our own internal LPT.

And.

And it frees up capital as well as Youre transferring the reserves to a third party.

In the U S from Forrester.

<unk> also entered into a loss portfolio transfer, but that was with our riverstone our own internal LPT.

Speaker 1: And again, they transferred really reserves, free up resources, Riverstone had some excess capacity and specialized in construction risks and construction defects, and also through ZMIF, Handle Workers Comp Claims. So those were the reserves that were transferred to Riverstone.

And.

And again, they transferred really reserves free up resources.

Riverstone had some excess capacity and specialize in.

In construction risks and construction defect and also <unk>.

Through through the.

Zenith handle workers' comp claims so those were the reserves that were transferred.

To riverstone.

Speaker 2: Thank you, Peter. Can we go on to the next question, Brittany? Our next question.

Thank you Peter if you go onto the next question Brittany.

Next question comes from Charles Fisher from Lf Partners. Your line is now open.

Good morning from.

Good morning Charles.

Speaker 2: How are you? Warren Buffett has written extensively about the importance of float. He said that even though float is a liability.

How are you Warren Buffett has written extensively about the importance of slow you said that even though floated a liability if the combined ratios below 100% is actually an asset.

Speaker 2: Berkshire has $130 billion in float against $700 billion.

Berkshire has a $130 billion in float against 700 billion in Martin County.

Speaker 2: Our Fairfax has $26 billion in float against $13 billion in market cap, and we are running at a 95% combined ratio. Can you tell us how you think about...

Our Fairfax has $26 billion in float against $13 billion in market cap.

We're running at a 95% combined ratio.

You tell us how you think about the value of Florida Fairfax is remarkable.

Speaker 2: Uh, you know, you're exactly right, Charles. You understand that 26 billion of float.

You're exactly right Charles you understand that $26 billion of float.

Speaker 2: like it's just a significant number and combined ratio is 95%, our reserving is very strong. It just shows you how undervalued our company is. And that's why I've said, we bought back a stock of 2 million shares. We'll continue to buy back stock. I mean, we can't control the price of our stock. Well, I said it's ridiculously cheap two years ago, said it again, and then we bought 2 million shares.

Like it suggests a significant number and combined ratio of 95% are reserving is very strong as it should.

As you how undervalued our company, yes, and that's why I've said, we bought back our stock of 2 million shares will.

We will continue to buyback stock.

We can't control the price of livestock.

Said that is ridiculously cheap two years ago said it again and then we bought 2 million shares.

Speaker 2: We will not do, we're not looking at expanding agendas, Chad.

We will not do we're not looking at expanding agenda Chad.

Speaker 2: We're not going to issue any shares to buy anything. Our first consideration is going to be to buy back shares. Not at the expense of our financial position. Not at the expense of taking advantage of the property cash and the hard market. Like we've grown by 25 percent. Charles, you know, you follow these insurance companies, you compare our growth to anyone else.

We're not going to issue any shares to buy anything.

This consideration is going to buy back shares not at the expense of our financial position not at the expense of taking advantage of the property casualty Hot market, we've grown by 25% John .

You follow these insurance companies do compare our growth to anyone else all in tunnel and Youll find that 25% is a very heightened.

Speaker 2: all internal, and you'll find that 25% is a very high number. And we've got companies like Allied at $6 billion, RSE at pretty well $6 billion, Crum at $4 billion. We've got pretty significant companies, but it's a decentralized structure.

And we've got companies like.

Highlight that 6 billion Odyssey, it pretty well 6 billion.

Come at $4 billion, I think we've got pretty significant companies, but it's a decentralized structure and we can take advantage of the opportunity as we see it always looking after our customers because the price we're getting for our product is as a pet price now.

Speaker 2: and we can take advantage of the opportunity as we see it, always looking after our customers, because the price.

Speaker 2: we're getting for our product is a fair price now.

Speaker 2: We're getting paid to take the risk. So yeah, no, Charles, you're exactly right. 26 billion and afloat. The market will see it over time.

Getting paid to take the right. So yeah, no you're exactly right 26 billion and that float the market will see it over time.

Thank you John next question page so Brittany.

Next question comes from Mark Dwelle from RBC capital markets. Your line is now open.

Speaker 4: Good morning. I mean, I'd be remiss if I didn't comment that this was the best combined ratio I've seen in the 20 years that I've

Yes, good morning.

I mean, I'd be remiss, if I blend environment.

The best combined ratio I've seen in 20 years.

I've followed the company so congratulations on that.

Speaker 4: uh... but i wanted to focus on a couple of other items that were uh... a little less

But I wanted to focus on a couple of other items that were a little.

Were less attractive in the quarter.

Speaker 4: I want to start with the corporate overhead and other income expense line. It's much elevated compared to what the normal run rate was. It was 183 million expense. Is there anything unusual or one time in nature within that?

I want to start with the corporate overhead and other income expense line.

Elevated compared to what the normal run rate was about $183 million expense.

Unusual or onetime in nature within that number.

Speaker 2: Yeah, Mark, we'll add to that, but just for your information, that combined ratio, you'll notice that the reserve redundancies were very limited and we've grown by, as I said, very significantly.

Yes, Mark will add to that but just for your information that combined ratio Youll notice that the reserve redundancies will vary.

<unk> and.

And we've grown by as I've said very significantly.

Speaker 2: If you go back in 2001, two and three, the last time we've had a hard market like this, we've more than doubled our premium. And the reserve redundancies come over a long period of time.

Back in 2000 than one to one through the last time, we've had a hard market like this we more than doubled our premium and the reserve redundancies come over a long period of time.

Speaker 2: And we just think our company is so well-reserved that the redundancies we will see for a long period of time. And the combined ratio is a measure, it's a good measure, but it doesn't reflect the underlying value that has been created in 2021 to the growth that we've experienced. Peter or Jen, on the expense question that Mark had,

And we just think our company is so well reserved at the redundancies, we will see for a long period of time.

The combined ratio is a measure that is a good measure, but it doesn't reflect the underlying value that does.

Been created in 2021.

So the growth that we've experienced Peter on.

Our Jane on the.

<unk> expense.

Expense.

That.

Mark Hurd.

Speaker 3: Yes, sure. So in the annual report, there will be more details on that corporate overhead. So we'll refer you to the MD&A when that comes out. But high level, that number includes our expense at the holding company and our insurance companies. It also includes things like goodwill and intangible assets that will be amortized through on acquisitions.

Yeah sure. So in the annual report there will be more details on that corporate overhead. So we'll refer you to the MD&A when that comes out but high level that that number includes our expense at the holding company in our insurance companies. It also includes things like goodwill and intangible assets that will be.

Amortized through on acquisitions.

Speaker 3: So, on a year-over-year basis, really, if you're looking at it, it's probably driven mainly by the increase.

So on a year over year basis, really youre looking at but it's probably driven mainly by the increase in some of the intangibles that had been amortized and some goodwill numbers that are being modestly and payer going through there in the quarter on a YTD basis, it's partly offset by <unk>.

Speaker 3: in some of the intangibles that have been amortized and some goodwill numbers that are being modestly impaired going through there in the quarter. On a YTD basis, it's partly offset by increased management fees that we've been able to obtain given that we have a stronger investment portfolio that's actually offset in income.

Increased management fees that we've enabled to obtain.

Given that we have a stronger investment portfolio, that's actually offset in income.

Speaker 3: So it's a bit of a harder number to get. I appreciate that in the press release, but in the MDNA, as I said, there is a lot more details that will be provided.

It's a bit of a harder number to get I appreciate that and in the press release somebody in the MD&A as I said there is a lot more details that will be provided.

Speaker 5: So Mark, yeah, the corporate overhead has broken a lot of detail in our writing report and that's coming soon and you'll get all the details that you want.

So mark Yes, we had the corporate overhead is broken up very much a lot of detail about radio report and that's coming soon and you'll get all the details that you won.

Any further question Mark.

Britney next question.

Okay and our next question comes from Craig Campania from.

<unk> investments your line is now open.

Hello Graham.

Speaker 6: Hello, Prem. I had a question on the Dutch auction. Can you hear me okay? Yes.

Jen.

The Dutch auction can you hear me, Okay, yes, yes.

Yes, I can hear you yeah. Thank you.

Speaker 6: That was a great idea, but a comment. Computer share, I guess they act as.

That was a great idea, but.

Comment Computershare I guess.

Act as depository.

Speaker 6: So, we had a problem with them and I would suggest maybe changing companies from what I can tell they never sent a letter of transmittal to shares held in their accounts in the U.S. I think they did in Canada, but not in the U.S., so I would just suggest.

So we had a problem with them and I would suggest maybe changing companies from what I can tell they never sent the letter of transmittal to.

Two shares held in their accounting is in the U S. I think they did in Canada, but not in the U S. So I would guess.

Suggest changing companies for future transaction.

He has a plan provider.

Speaker 6: The dividend, yeah, that was great, we got our 10 bucks.

The dividend Yeah that was great we got our 10 Bucks.

Speaker 6: still like to see like maybe a mid-year special dividend of 10 bucks for all the people that are holding Fairfax until they go to their golden coffins.

Still like to see like a maybe a mid year special dividend up 10 Bucks.

For all the people that are holding Fairfax until they go to their golden coffins.

Yeah, it's great to get it John .

Speaker 5: Hey, thank you for your comment. Would you be kind enough to send us a little note if you don't mind on your experience so that we can reflect on that? And...

Hey, Matt.

Thank you for your comment would you be kind enough to send us a little note. If you don't mind on VR experience. So that we can reflect on that.

And.

Speaker 5: We'll check that out for you and make sure it doesn't happen the next time or see how we can remedy that. But in terms of dividend, we paid a $10 dividend. Our focus is on buying our shares. We think it's like Charles Fisher, the fellow who said it previously, we got $26 billion in float. You'll see all these numbers per share in the annual report, but anytime we can buy back our stock.

Okay.

Check that out for you and make sure it doesn't happen the next time.

Let's see how we can remedy that.

But in terms of dividend that we paid $10 dividend and our focus is on bringing on channels. We think it's Mike.

Mike Charles Fischer, the fellow who said it previously.

We got $26 billion in float and anytime we can you can see all these numbers for sure.

Annual report, but anytime we can buy back stock.

Speaker 5: That's what we should do, and in fact, we're doing that for you by buying stock, so we're giving you a dividend, of course.

That's what we should do but.

And in effect, we're doing that for you by buying back stock. So we're giving you a dividend of course.

Speaker 2: not in the form of a dividend, but in terms of a buyback. But I appreciate your question and we'll keep that in mind.

Not in the form of a dividend, but in terms of a buyback but.

But appreciate your question and we'll keep that in mind.

Breaking next next question please.

Absolutely as a reminder, if you would like to ask a question. Please press star one and record the nameplate and when prompted our next question comes from Mark.

RBC capital markets. Your line is open.

Hey, good morning, I think I might have gotten cut off there before I got a chance to ask my second one.

Speaker 4: morning. I think I might have gotten cut off there before I got a chance to ask my second one.

Yes.

Thank you Mark.

Speaker 4: So the second-two other questions-well, actually a third. One is if you did have any idea of when the annual report was going to come due. But the more important questions, I guess, I wanted to ask on the swaps related to Fairfax's own shares, I know a lot of those were one-year swaps that were taken out in the fourth quarter a year ago. Were those extended forward with the duration rolled forward, or did they just open

The second two other questions.

A third one.

If you did have a any idea of when the annual report was going to come due.

The more important questions I guess I wanted to ask on the on.

On the swaps related to sales taxes own shares I know a lot of those were one year swaps that were taken out in the fourth quarter, a year ago, where those extended forward with their duration rolled forward or are they just they just open and enrolling.

Speaker 5: Yes, the annual report date, when is that again, Jen? Friday, March the 4th.

Yes annual reported when does that again now.

Mark on Friday March the fourth.

Speaker 5: Friday, March the 4th. Peter, on the TRS swaps, we expect to extend them, but Peter?

On Friday March the flawed.

Peter on the Trs swap so be it.

Expect to extend them, but Peter.

Speaker 1: Yeah, they've been rolled and extended. So they're still still out there.

They've been rolled an extended so theres still still out there.

So mark any other comment.

I am so sorry.

Speaker 5: Yeah, yeah, yeah, yeah, no problem. But, Brittany, he'll come back again if you had a question. But next question.

Yes.

Yes, yes, no growth, but they will not come back again, if you had a question but next question. Please okay. Our next question comes from.

Family L. L. P. Your line is now open.

Speaker 4: Hi, we are a private charitable 501c3 foundation in the U.S., had a terrible time with the Dutch auction.

Yes, hi, good morning.

You bet Charles.

Oh five O what C. Three foundation in the U S had a terrible time with the Dutch auction.

It's our opinion that the nature of the Canadian tax nature of the distribution wasn't really disclosed well kept me offering document we tried to talk to you a law firm U S Counsel for <unk>, you said the U S.

Speaker 4: Dividend nature, the Canadian tax nature of the distribution wasn't really disclosed well in the offering

Speaker 4: We tried to talk to your law firm, U.S. Council for Tories in the U.S.

Speaker 7: uh... yes never returned phone calls or emails we set notes to fair

Yes, you never return phone calls or emails, we sent notes to Fairfax no one.

Speaker 4: No one, no one ever replied.

No one ever replied to anything.

Speaker 4: Turn out the Canadian, uh, our broker withheld 25% of the dividend.

The Canadian.

Broker withheld 25% of the dividend.

Speaker 4: as a dividend, as a Canadian withholding.

As a.

Dividend, so Canadian withholding tax even though we are a U.

Speaker 4: Even though we are a U.S. exempt charitable

U S exam.

Both foundation.

Uh huh.

Speaker 4: it's very it turns out it's a pretty difficult thing to fix the brokers don't do it accountants

It's very it turns out it's a pretty difficult thing to fix the brokers don't do it accountants don't know about it.

Speaker 4: We ended up having to hire a specialist firm in New York to try to get the

We ended up having to hire a specialist firm in New York.

To try to get somebody back from Canada.

Speaker 4: It's going to cost our fund 20% of the dividend withheld.

Got it caused star fraud.

20%, David Ed withheld.

Speaker 4: our private foundation anyway the other person mentioned about depository trust or whatever I think the whole thing was done very very poorly from a from a legal and a disclosure standpoint

Our private foundation anyway.

The other person bed should about depository trust or whatever I think the whole thing was done very very poorly from may.

From a legal disclosure standpoint.

Speaker 4: And I will tell you, I have been a member of the New York Bar for 52 years, so I have a pretty.

I will tell you I have been to the New York Bar for 52 years, So I have a pretty good.

<unk>.

Speaker 2: First of all, we're very sorry for your experience. We disclosed it in the offering circular, but please send a note to me directly and I'll make sure that we examine exactly what happened. If you would be kind enough to lay it out for me, we just thought it was, you know, this is a…

So we're very sorry first of all we're very sorry for your experience.

Disclosed it in the offering circular but please send a note to me directly and I'll make sure that we examine.

Exactly what happened if you'd be kind enough to lay it out for me.

We just started.

This is up.

Speaker 2: This is a significant issue of where there's something that's done quite often. We are aware of the concerns, problems in the United States, but we would love you to send me a note and I'll make sure we follow up and try as best as we can not to repeat

So this is a significant issue a bed is something that's done quite often we are aware of.

Concerns problems in the United States, but we would love you to send US a sent me a note and I'll make sure we follow it and.

And try as best as we can not to not to repeat that.

Speaker 4: You don't disclose your email or your contact information on the website, so we didn't have your information. It's very simple, it's p underscore whatsapp, p underscore whatsapp at Fairfax.ca.

You don't disclose your email your contact information on the website. So what we did.

It hits.

It's very simple it's fee underscore what sir.

I underscore what at Fairfax not CA.

Okay.

Speaker 4: Okay, but one other concern from the company's standpoint

Okay, one other concern from the company's standpoint Julien.

Speaker 4: doing something without disclosure or whatever, you don't want to open yourself to a class action lawsuit.

Julie something without disclosure or whatever you want to open yourself to a class action law suit.

Speaker 4: On that front, we're not worried at all. We gave you a full disclosure, a total disclosure. I talked about the stock being undervalued for two years, so we're not worried about that. I can't stop anyone from a class action lawsuit.

Uh huh.

Anyway on the on that.

We're not worried at all we gave you a full disclosure of total disclose that I talked about the stock being undervalued for two years. So.

We're not worried about that.

Again chop anyone from a class action lawsuit, but.

Speaker 5: Uh, but we, uh, um, we were firmly, um, uh, um, uh,

But.

That we will firmly.

Speaker 2: sure in our minds that we've disclosed every piece of information before making that substantial issue of public comment.

Sure not mines that we've disclosed every piece of information before making that substantial issuer bid.

Speaker 5: But let me respond to your note to me on an email, and then we'll take that forward. So thank you for your question. And Brittany, next question, please.

But let me respond to your notes to me on an E Mail and then we'll take that forward.

So thank you for your question and Britney next question. Please.

Okay and as a reminder, if you would like to ask a question. Please press star one our next question comes from Encana.

Hey, Barry private individuals your line is now open.

So again on this one here.

No.

Yes, Mike.

Speaker 8: Yeah, like, uh, I have, uh, a Zyraga, Lumigan, and...

We will begin and bad news.

Our global employees.

The woman.

Paul.

Speaker 2: Yes, thank you very much, Brittany, next question please.

Yes.

Thank you very much.

Yes Brittany.

Next question please.

Next question comes from William Gilmore from Stifel. Your line is now open.

Speaker 9: All right, it's good to hear things are going well, Prem. I've been following your.

Alright, thats good to hear things are going well I've been following your stock.

Speaker 9: since, I think, the housing crisis with a value investment.

So I think the housing crisis.

The value of investments.

Speaker 10: attitude. I would be remiss in my duty and...

Attitude I would be remiss and my duty and.

Speaker 9: Just not doing my job if I didn't understand the investment.

You're just not doing my job if I didn't understand the investment in them.

Speaker 9: So it's too bad that the last caller has some issue about.

So it's too bad that the last caller.

Some issue about.

What may or may not have happened.

Speaker 9: And my only question for you guys is, currently, in your fixed income portfolio, can you estimate the duration...

And my only question for you guys is currently.

And your fixed income portfolio can you estimate the duration.

Speaker 5: Yeah, Peter or Jen on that duration question.

Yeah, Peter Jen on that duration question.

Speaker 3: Yes, sure. So in the annual report, we will provide the duration on the fixed income portfolio. We're currently looking at probably less than one year, about $6 billion of the portfolio. If you look kind of one to five years, it's about $7 billion and then the rest of it makes up the residual five to ten-year position.

Yes sure. So in the annual report we will provide on the duration on the fixed income portfolio were currently looking at probably a one less than one year, but about $6 billion of the portfolio.

What kind of one to five years, it's about $7 billion and the rest of it makes up the residual five to 10 year position.

Almost 50%.

Our bond portfolios are very short.

Speaker 5: Our bond portfolios are very short term, there's very little risk in terms of term. We think interest rates are going up.

Very little.

The risk in terms of term, we think interest rates are going up.

Speaker 11: and we thought we weren't getting paid for taking interest rate risk and so it's all pretty treacherous.

And we wanted to we thought we weren't getting paid for.

Taking interest rate risk and so it's all it's all.

Pretty treasury note.

Speaker 2: very, very safe bonds, and it's very short term. Most of them are less than three years in duration, less than three years in term and duration, and so it's a very short term bond.

Very very safe bonds, and its very short term most of them less than three years in duration less than three years in term and duration and so it's a very short term bond portfolio.

Speaker 5: We will, most companies,

We will most.

Companies so.

Speaker 12: I think in our industry, I've reached for yield. I don't think you'll find another company that's taken 50% of its portfolio in cash and short-term investments, and we've been worried about this for some time, and interest income, we think, will go up, but our bond portfolios will not go down. Our capital will not be reduced because of rising interest rates, and interest rates have already gone up by 50 base points this year, right? Thank you.

I think in our industry have reached for yield you I don't think you'll find another company that's taken 50% of its portfolio in cash and short term investments and and we've been worried about this for some time.

Non interest income, we think will go up but our bond portfolios will not go down our capital will not be reduced because of <unk>.

Rising interest rates and interest rates have already gone up by 50 basis points this year right.

Okay. Thank you.

So thank you very much Stephanie next question. Please okay and our next question comes from Ashwin.

Marcia.

Edward Jones Your line is now open.

Thank you and congrats Mr. What's on the wonderful year amazing year.

Speaker 2: Thank you very much. No problem.

Thank you very much.

My question is about Fairfax, India.

We just is there a philosophical change in terms of.

Willing to pay up for higher growth through low risk investments.

Or is it just a factor of you having greater.

Greater access to those companies, whereas competition in that area. It may not be as great for those unique assets I was just wondering if there's a little bit of a difference in philosophy investment philosophy in India. That's my question no.

Speaker 5: No, good question. No, the investment philosophy is the same. What we're trying to buy is good companies with great management who built the company, who want to continue to build it, and want us as a partner.

Good question no no. The investment philosophy is the same what we are trying to buy is good companies with great management, who built the company who want to continue to build it and want us to support them.

Speaker 2: We're not looking at companies that are run by people who want to sell it in three years or four years. We're not private equity. And we want to be partners with founders and people who own a big share of the company and who want to build it.

Looking at companies that are run by people, who want to sell it in three years or four years, we are not private equity and we want to be partners with.

Firm does and people who own though.

A big show the company and we want to build it.

Speaker 2: And that's what we've done. If you look at the investments that Chandran and our group in India have done, it's basically linked to founders. In fact, today, there's.

And that's what we've done if you look at the investments that Chad rundown a group in India are done.

Basically link two founders in fact today.

Speaker 2: a company that the press release went out, Janix, I think, where we bought 70%, and with a founder having the 30%, and you've got a terrific track record, 10, 15 years, entrepreneur, built it from scratch, wants to continue to build a company, and we'd be a good partner for people like that. Got it, got it. I guess the restaurant.

The company that.

This release went out John X I think will be.

About 70% and.

The phone, they're happy about 30% and we've got a terrific track record 10, 15 years entrepreneur belt subscribed wants to continue to build the company.

And where we would be a good partner for people like that.

Yes.

Got it got it I guess.

Yes.

Sorry go ahead.

Go ahead.

I was just in terms of.

I guess, a greater willingness to pay up for a high ROIC.

Companies over there just in terms of the devaluation side basically justifiably paying up for those different types of businesses that have I guess greater reinvestment characteristics or growth characteristics.

Speaker 5: Yeah, we look at all of that. We take that into account. In India, the reason we like India is every company tends to grow at 30, 40, 50 percent. India is going to rebound significantly. Thomas Cook, which went through a really tough time with

Yes.

But we look at all of that we take that into account the beacon.

In India. The reason, we like India.

The heavy with company tends to grow at $30 $40, 50%, India is going to rebound significantly Thomas Cook, which went through a really tough time, but.

With.

Speaker 2: tourists to India and domestic pretty well down to zero. That's going to bounce back tremendously, you know, and companies in the restaurant business like in

Tourists to India and domestic.

Pretty well down to zero, that's going to bounce back tremendously.

And the companies in the restaurant business.

Speaker 2: in Canada, Recipe, and companies like that will bounce back huge. Fairfax, India has a book by Amu posted.

In Canada recipe.

He is like that will bounce back.

Fairfax, India is the book value posted net asset value of close to $20, which we think is conservative.

Speaker 2: net asset value close to $20, which we think is conservative.

Speaker 2: And the stock is selling at 12 or 13. And as you've seen in the press release, we continue to buy back the stock.

The stock is selling at 12 or 13 and as you've seen in the press release, we continued to buyback the stock.

Speaker 2: So, as a matter of fact, India continues to reduce the shares outstanding at these good prices.

So Fairfax, India continues to reduce the shares outstanding at these oil prices rethink.

Speaker 5: So we're looking at it over the long term, and we've got a very good group of companies that have performed well in the main, and that we expect to benefit. The shareholders of Fairfax India will benefit over time. India is going to be a terrific place to put money as we normalize.

So we're looking at that over the long term.

And we've got a very good group of companies that have performed well in the way and that.

But we expect to benefit the shareholders of Fairfax, India will benefit over time, India is going to be a terrific place to put money as we normalize as everything becomes dull.

Speaker 5: As everything becomes normal, strong economy, inflation, some rising interest rates, countries like India are going to do very, very well. They're going to bounce back in space, 9% economic growth, 8%, perhaps even 10%.

Both.

Our strong economy inflation, some rising interest rates.

Like India are going to do very very well.

Got a bounce back in spades, so, 9% economic growth, 8%, perhaps even 10%.

Speaker 5: And in that economic, that's real, not including inflation, in that type of economic environment, individual companies do very, very well.

And then that economic that's real not including inflation and that type of economic and buy them, but.

Individual companies do very very well.

Stephanie next question please.

Thank you as a reminder, if you would like to ask a question over the phone. Please press star one.

Your name clearly when prompted Okay. Our next question comes from thank you.

Your line is now open.

Speaker 8: Hello, can you hear me? Yeah, yeah, we can hear you. Please go ahead. Yeah, yeah, yeah, hi, Prem.

Hello can you hear me.

Yes, we can hear you. Please go ahead.

Yes, Hi, Brian .

Speaker 8: I'm a new investor with the company for the last two years and not a sophisticated investor at all. So pardon me if the question might sound a little dumb, but I'm trying to understand the transaction.

I'm, a new investor with the company for last two years and a.

Not a sophisticated investor it also pardon me.

Question might sound a vendor to them.

I'm trying to understand the transaction that Fairfax did with RBC.

Capital to purchase the stock.

So am I correct to understand that for FX.

10% of audit fee for <unk>.

Almost $1 billion.

And then use that proceeds to.

Does that not mean Odyssey, where I see.

$10 billion and the whole company Fairfax is trading at around $18 billion.

Speaker 8: whole company, Fairfax, is trading at around $18 billion.

Speaker 13: Well, that's right. That's one of the reasons we did the transaction, of course, but you can see how undervalued Fairfax was. Honestly, it's just one company and you're very perceptive and your reasoning is right on.

That's right.

<unk>.

That's one of the reasons, we did the transaction of course.

But you can see how undervalued Capex was just obviously just one company and they are.

Very perceptive and and your reasoning is right on.

That's how we saw it too.

Speaker 8: So, I mean, I'm just, you know, I'm still shocked that that's possible in today's market, but thank you for doing that. And I think that that was a great move. So are you guys planning?

No.

I'm just.

I'm still shocked.

Possible in today's market, but thank you for doing that and I think that that was a that was a great move so.

Are you guys are planning to do such.

Transactions in the future because I personally don't think that.

You should be worried about the dividend here at all.

Your stock is trading.

So are you guys.

Thinking about such transactions like is the management sort of focused on taking advantage of this undervalued stock.

Speaker 2: Of course, I told you we'd buy back stock, not at the expense of our financial position, and not at the expense of capital to take advantage of the hard money.

Our conscious that I told you we buyback stock not at the expense of our financial position and not at the expense of capital to take advantage of this.

The hot market.

Speaker 5: So really, we're a very nimble entrepreneurial company. You saw that in our decentralized insurance operations. You saw how we expanded so significantly, more than pretty well any company in North America. And you'll see us take advantage of opportunity, but not at the expense of our financial position and not at the expense of our ability to take advantage of a good insurance market. Next question, please.

So really what we are we're very nimble entrepreneurial company.

So that in a decentralized insurance operations you somehow.

We expanded significantly more than pretty well any company in North America.

And Youll see us take advantage of opportunity, but not at the expense both financial position and not at the expansion of <unk>.

<unk>.

Take advantage of.

Insurance market.

Next question please.

Tony.

There are no additional questions at this time.

Speaker 5: So thank you very much, Tiffany, and thank you all for joining this call. We will look forward to further questions, and thank you again for joining this call. And we're having our AGM soon in April , and with a little bit of luck, it's going to be an in-person AGM. And we invite you all, if you can, to join us. So thank you all for joining, and thank you, Tiffany.

So thank you very much and thank you all for.

Joining this call.

We will.

I look forward to further questions and thank you again for joining this call and we will Oh, we're having our AGM soon in April and.

With a little bit of luck, it's going to be in person AGM and we invite you. All if you can join US. So thank you all for joining and thank you Tiffany.

Okay.

Today's conference.

Okay.